Democrats call for moratorium on data center buildout following midterm elections

Following the Democratic party's victory in the 2026 U.S. midterm elections, several Democratic leaders have called for restrictions on data center construction and the development of AI.

Calls for a national moratorium

Sen. Bernie Sanders, I-Vt., who caucuses with the Democrats, called for a national moratorium on data centers in a post on X. Sanders stated, “National data center moratorium now,” and added, “Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future.”

According to TechCrunch, Sanders and Rep. Alexandria Ocasio-Cortez have introduced a bill to freeze the construction of new data centers across the country until lawmakers establish safeguards regarding environmental damage, power prices, and local consent.

Rep. Yassamin Ansari, D-Ariz., wrote on X that pausing AI development needs to be a top priority for the Democratic majority in the House on Day 1. Rep. Greg Casar, D-Texas., chair of the Congressional Progressive Caucus, responded "Yes!" to the post, according to CNBC.

State and local developments

Several Democratic officials have addressed data centers in their victory speeches or campaigns:

• Texas: Gina Hinojosa, who defeated Republican Gov. Greg Abbott, stated in an October video that she would "issue a moratorium, a ban, on all data center approvals until laws can be passed by the legislature to protect Texans."
• Pennsylvania: Gov. Josh Shapiro, who signed an executive order in August to slow data center development, said that "the folks in our local communities get the final say" rather than big tech companies.
• South Carolina: Sen. Annie Andrews, who won a Senate seat, stated in her victory speech that voters chose a state "where decisions about communities are made by the people who live in our communities, not the billionaires or data center companies in Washington D.C."
• Ohio: Sen. Sherrod Brown stated in his victory speech, “I do not work for data centers.”

Market and political reactions

Shares of companies with exposure to the technology have seen declines. The iShares Semiconductor ETF (SOXX) tumbled nearly 9% on Tuesday, and the iShares Semiconductor ETF was down as much as 11% on Thursday. Nvidia declined 8%, while Advanced Micro Devices sunk more than 14%.

Industry leaders have noted the potential impact of these political shifts. Meta Platforms President Dina Powell McCormick said on Wednesday that launching new U.S. data center projects will grow more difficult. OpenAI pledged on Thursday to cover all electricity and infrastructure costs at future campuses it owns and operates.

According to a CNBC Voter Poll, 56% of voters said AI and data centers were a crucial or major factor in their decision at the ballot box. Of those voters, 65% said they cast a ballot for a Democratic candidate for Congress.

Democrats are not united on the issue. Nadine Smith, president and CEO of Color of Change, said some Democrats fear that a ban could hamper the advance of AI and undermine national security, according to TechCrunch.

---

Sources

• cnbc.com: Top Democrats call to rein in AI buildout after midterms sweep: 'National data center moratorium now'
• qz.com: Bernie Sanders demands national data center moratorium after midterms

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.